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Jobs Not Saved or Created by Tariff, TIA Says
The just-expired Section 421 tariff on imported China-produced consumer
tires failed to save or add new tire worker jobs, TIA said in a
statement issued Sept. 27.
At the same time, TIA said that its favors "free and open markets with level playing fields."
In its statement, TIA pointed to a report by the Peterson Institute for
International Economics that claimed, “approximately 1,200 American jobs
were saved as a result of the Chinese tire tariffs,” but, in fact, the
tariff action by the Obama Administration “mostly benefited other tire
exporting countries first and American manufacturers second.”
TIA reminded that at the time the Section 421 tariff schedule took
effect in September 2009, executive vice president Roy Littlefield said,
“The tire manufacturers made the decision years ago to shift production
of these lower-cost tires out of the U.S. All this action will do is
force the tire manufacturers to shift production of these lower-cost
tires to other countries.”
That is exactly what happened, TIA said.
The association noted the recent call by the Administration for the
World Trade Organization to investigate claims that the Chinese
government was illegally supporting automakers and auto part companies
exporting products to the U.S., and that “these companies received $1
billion in subsidies between 2009 and 2011.”
“Although this is a different animal from the Chinese tire tariff…it is a
continuation of the on-going efforts of integrating the Asian giant
into the world market,” TIA said. “This is happening by the fact that
China is using the WTO to resolve disputes between itself and the U.S.
In fact, the Chinese have submitted a countersuit to the WTO because of
the Administration’s actions.”
“It is good that the Chinese government is using the WTO,” said
Littlefield. “It is the proper mechanism for resolving such
disagreements and they are establishing a good track record of complying
with the WTO’s findings."
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